Correlation Between INPOST SA and MBANK
Can any of the company-specific risk be diversified away by investing in both INPOST SA and MBANK at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining INPOST SA and MBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INPOST SA EO and MBANK, you can compare the effects of market volatilities on INPOST SA and MBANK and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in INPOST SA with a short position of MBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and MBANK.
Diversification Opportunities for INPOST SA and MBANK
Significant diversification
The 3 months correlation between INPOST and MBANK is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA EO and MBANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBANK and INPOST SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on INPOST SA EO are associated (or correlated) with MBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBANK has no effect on the direction of INPOST SA i.e., INPOST SA and MBANK go up and down completely randomly.
Pair Corralation between INPOST SA and MBANK
Assuming the 90 days horizon INPOST SA EO is expected to under-perform the MBANK. But the stock apears to be less risky and, when comparing its historical volatility, INPOST SA EO is 1.19 times less risky than MBANK. The stock trades about 0.0 of its potential returns per unit of risk. The MBANK is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12,225 in MBANK on September 14, 2024 and sell it today you would earn a total of 295.00 from holding MBANK or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INPOST SA EO vs. MBANK
Performance |
| Timeline |
| INPOST SA EO |
| MBANK |
INPOST SA and MBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INPOST SA and MBANK
The main advantage of trading using opposite INPOST SA and MBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPOST SA position performs unexpectedly, MBANK can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MBANK will offset losses from the drop in MBANK's long position.| INPOST SA vs. Waste Management | INPOST SA vs. Corporate Travel Management | INPOST SA vs. Vishay Intertechnology | INPOST SA vs. SMA Solar Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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